Spot prices in the Indian domestic market hit a 32-week high on 22 August, in response to the continued weakening of the rupee, market players said.

At the close of trade on 22 August, toluene cargoes were traded at close to Indian rupee (Rs) 80.00/kg ($1,239/tonne) ex-tank in Kandla, while deals and discussions in Mumbai were hovering at Rs81.00-82.00/kg ex-tank, according to ICIS.

"[The] rupee has depreciated 10-15% just over the past 10 days. We have to raise offers locally to prevent losses," a Mumbai-based trader side.

Besides the volatile Indian currency, lower toluene stocks at major ports prompted local traders to increase offers further.

Inventories in Kandla were at about 13,000-14,000 tonnes and at 5,000-6,000 tonnes in Mumbai, about 22% down from the previous week, local traders said.

India has a monthly import demand of about 20,000 tonnes, players said.

Lower imports in recent months provided some relief to India's previously high toluene stocks, they added.

Monthly imports in Kandla have been on the decline over the past months, falling to around 8,000 in June and July from more than 22,000 tonnes in February, according to market estimates.